Franklin Street Properties Corp. REIT has recently sold Pershing Park Plaza in Atlanta for $34 million, resulting in a loss of over $11 million. The nine-story building, located at the intersection of Peachtree and West Peachtree streets, was originally purchased by Franklin Street in 2016 for $45.5 million.
The buyer of the 160,000-square-foot property is 28th Street Ventures. This sale was announced by Franklin Street as part of their third-quarter earnings report and is a strategic move to pay down debt through selling select office properties.
According to George Carter, CEO of Franklin Street Properties Corp., “Our directly-owned real estate portfolio currently consists of 15 owned properties totaling approximately five million square feet.” As stated in their quarterly report from September 30th,2024 compared to December31st ,2023,the leased percentage decreased from approximately74%to70%, primarily due to two property dispositions and lease expirations during that time period.
In summary,FranklinStreetPropertiesCorp.REIThasrecentlyunloadedPershingParkPlazainAtlantaasastrategicmovetopaydowndebtandfocusontheirremainingportfolioofofficepropertiesinthearea.Thebuildingwasoriginallypurchasedfor$45millionin2016,butwiththissaletheyhaveallocated$27milliontopayoffdebt.ThisispartoftheirongoingefforttomaintainastrongfinancialpositionandmaximizethevalueoftheirofficeportfolioinAtlanta.
